Key facts
- US crude oil inventories decreased by 9.119 million barrels in the week ending June 5.
- Gasoline inventories fell by 1.191 million barrels.
- Strategic Petroleum Reserve inventories reached their lowest level since August 2023.
- US crude production saw a slight decrease to 13.707 million bpd.
- Despite inventory draws, Brent crude fell 3.03% and WTI crude fell 3.48%.
Despite significant drops in US crude oil and gasoline inventories, oil prices declined as traders reduced geopolitical risk premiums. The American Petroleum Institute reported a 9.119 million barrel decrease in crude inventories for the week ending June 5, while gasoline inventories fell by 1.191 million barrels. Strategic Petroleum Reserve inventories also decreased by 7.9 million barrels, reaching their lowest level since August 2023. US crude production dipped slightly to 13.707 million barrels per day. However, July WTI crude futures settled near $85.93, down 4.79% from the previous week's close, as traders bet on diplomacy between the United States and Iran following President Trump's decision to cancel planned military strikes.